Turnover Rates
- Thread starter ATeam
- Start date
The old reefer debate rages on. Regardless of who is in or isn't, it seems be becoming a tougher go in that segment. With new fully equipped reefer trucks well over 200k, I don't see consistent rates to support them. As mentioned before, that doesn't mean you can't make money with one, but why do that when I can capture the same revenue with a regular straight?
Could have a little more appeal with a used one?
That might change in the future but as more jump in, I see the rates being driven down on (not all) but much of the type of freight regardless of who the carrier is.
Could have a little more appeal with a used one?
That might change in the future but as more jump in, I see the rates being driven down on (not all) but much of the type of freight regardless of who the carrier is.
I am not the source for information on this. When Landstar is ready to announce its program to owner-operators, I expect they will do so. I'm happy to share that work is now underway to develop the reefer business at Landstar (over and above what they already have), but that is all that would be appropriate for me to share at this time. I am not involved in any direct way in that work.
That said, let me also say that I am very excited by the prospect of Landstar reefer work. When I think about the resources an 8,000+ truck carrier can bring to bear, the seasoned sales force it has nationwide in its agent network, and the absolute respect this company has and continually demonstrates for its contractors (BCO's) ... Oh my goodness, the things that might be!
Just imagine the possibilities of doing reefer work with a carrier that does not charge you fees for equipment that does not do what it is supposed to do; and brings common sense to things like letting you run your reefer on auto-start instead of continuous run on common reefer loads where the customer is perfectly fine with a temp range that is good enough if it is above freezing or within say 20 degrees of the set point; and that does not require you to arrive at 01:30 because the computer says you should when when the consignee will not open for business until 08:00.
Imagine the possibilities of doing reefer work with a carrier that places equal weight on the customer's, carrier's and owner-operator's needs. ... Oh my goodness, the things that might be!
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moose
Veteran Expediter
Maybe in Expedite, but not in T/L. we do not see Reefers rates going up to keep with CARB & Federal ever raising regulation.
Just a simple question Phil. how long will your reefer be allowed into California ?
at the Recent MATS, Carrier displayed the new concept electric/surepower reefer trailer.
how long before they force us to buy this crap ? this thing is WAY over 80 grands.
for what ? a 1.75$/M all inclusive ?
yh'a, very lucrative market.
Just a simple question Phil. how long will your reefer be allowed into California ?
at the Recent MATS, Carrier displayed the new concept electric/surepower reefer trailer.
how long before they force us to buy this crap ? this thing is WAY over 80 grands.
for what ? a 1.75$/M all inclusive ?
yh'a, very lucrative market.
In less than two years our reefer will become non-CARB-compliant, not because there is anything wrong with it, but simply because CARB says after a reefer reaches a certain age it must be upgraded or replaced.
In our case, at today's prices, the upgrade would be to replace the reefer engine. The cost is approx. $7,000. The reefer run we are on right now pays $13,000 to the truck. Several months ago, we did a reefer run that paid over $10,000 to the truck. Runs like those are unusual but show the viability of a reefer upgrade.
A whole new reefer with a split install like the one we have now would cost over $25,000. But even at that price, if Landstar can load us up with the occasional $13,000 load or several $5,000 loads, it would not take long to pay for itself.
At our former carrier, the issue was not so much that customers were paying less to ship reefer freight as it was that the carrier was developing new ways to keep more of that money for itself (company-owned equipment, preferential dispach, flat-rate trucks). It's more transparent at Landstar, and more fair.
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moose
Veteran Expediter
Hate to say this, but be careful what you wish for.
probably the only way your smart friend can make it happened is by offering O/O a rentals of a company owned reefer trailers,
what makes you think they will not, then, go the EX way. trying to keep those trailors from belly's up.
probably the only way your smart friend can make it happened is by offering O/O a rentals of a company owned reefer trailers,
what makes you think they will not, then, go the EX way. trying to keep those trailors from belly's up.
I think Phil hit the nail on the head with regards to current practices. It would make sense in his case to review the potential but if someone was looking for something new, those rates would have to be consistently higher.
In all fairness, there is two dollar and up per mile loads but I am seeing a lot less of them and if the carrier is keeping a larger portion, well you know the rest.
In all fairness, there is two dollar and up per mile loads but I am seeing a lot less of them and if the carrier is keeping a larger portion, well you know the rest.
It's not the only way. There are many ways that come to mind to build a reefer trailer and straight truck fleet at a company like Landstar but that is above my pay grade.
There are no guarantees that Landstar will not do what FedEx Custom Critical did with its company-owned reefer trailers, but I trust Landstar not to do it.
Landstar has a radically different view of its owner-operators (BCO's) that is woven into the company's fabric. They have been putting thousands of trailers and thousands of BCO's together for a long time. There also a good number of BCO's who pull their own trailers with Landstar.
I don't talk to many big-rig operators at Landstar but have yet to hear any complaints about the trailer arrangements they have.
It's a different culture and different context. Buying a few dozen reefer trailers at a carrier in which that represents a major percentage of the reefer fleet is an entirely different proposition than buying a few dozen reefer trailers in a fleet of 8,000+ trucks (if they buy trailers at all).
At FedEx Custom Critical, the people at the top justify their existence by sending money to Memphis. At Landstar, the people behind the reefer business development are also the people at the top of the company. There is no Memphis. There is only Landstar. As I said, a different culture and different context.
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Better service or lower rates, yes. But maybe also same service at same rates and a better sales force; not call-center types but feet-on-the-street, knock-on-doors, industry-involved, community-involved types; seasoned, established, networked people who have been selling transportation services for many years.
Regarding 20 to 30 loads per month, two or three trucks combined will do that now in a good month at FedEx Custom Critical will they not? Think bigger.
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Cheap isn't always better. I would rather pay Ateam rate that lets say a truck that was leased on to CTX. For those of you that don't remember CTX, lets put it this way. I would be scared to have them move anything for me. Ateam (Phil and Diane) on the other hand take pride in the job they do and will get my freight to me on time and not damaged.
The difference with Landstar and others when it comes to company owned trailers comes down too the fact that Landstar doesn't own any trailer in the system they are all leased. When it comes to a BCO here they would rent the trailer from Landstar and it would be up to the BCO to get loads. Same goes for the expedited side of Landstar.
Right now there are 52 refer trailers owned by BCO's in the system and 7 D units in the express side of Landstar.
Right now there are 52 refer trailers owned by BCO's in the system and 7 D units in the express side of Landstar.
That is where the difficulty comes in with many carriers attempting the reefer freight dream. If the seven trucks is accurate, it is a tough gig for a saleman to sell because he can't provide adequate coverage unless they hike the price. Why? Because as they expand, they may have to broker a good percentage of those loads. Or, you use the 52 trailers and the rate stays high because you are using tractors to carry the work. Again, more expensive but many carriers are having to go that route because the reefer straight trucks are shrinking in numbers.
I took those numbers direct from the companies web site. I just put in DR and tt refers and got those numbers.
Now I don't know what the average rate is for a D refer unit with all the companies, but even with a refer unit people seem to be making money here a LEAM.
Zorry, maybe you could help me with the percent of loads you do calling for you to start your refer. Is it 50% or more or is it less then 50% of your loads. Do you turn down non refrigerated loads.
Now I don't know what the average rate is for a D refer unit with all the companies, but even with a refer unit people seem to be making money here a LEAM.
Zorry, maybe you could help me with the percent of loads you do calling for you to start your refer. Is it 50% or more or is it less then 50% of your loads. Do you turn down non refrigerated loads.
zorry
Veteran Expediter
We own a reefer truck. So ALL my loads must support the costs of owning a reefer truck. If the unit is on,that load must support those costs plus the costs of opperating the reefer.
I accept any loads that support my pricing. I'd prefer to do non-refeer loads that pay well enough. Reefer loads as needed.
We are fully credentialed. We pick-up and deliver on time. We deliver damage free. We do the manual labor loads too. ( inside deliver,,third floor,etc.)
We have top notch equipment and feel our services are valuable.
We ,as of today, will be known as the B Team.
I accept any loads that support my pricing. I'd prefer to do non-refeer loads that pay well enough. Reefer loads as needed.
We are fully credentialed. We pick-up and deliver on time. We deliver damage free. We do the manual labor loads too. ( inside deliver,,third floor,etc.)
We have top notch equipment and feel our services are valuable.
We ,as of today, will be known as the B Team.
Tennesseahawk
Veteran Expediter
Yeah... I think Z Team is already taken.
But why pick something like Phil? Are you wanting to be like him?
Please don't start. Investing emotional energy in Phil or anyone else is a loser's game. Focus on business. Make rational decisons. There are no lines on a profit and loss statement for how you feel about this or that or what you think think about one person or another.